Govt asks Patanjali to explain ‘dubious’ transactions flagged by economic intelligence wing
New Delhi: India’s Corporate Affairs Ministry has issued a notice to Patanjali Ayurved Ltd., the traditional medicine firm co-founded by yoga guru Baba Ramdev, seeking clarification over transactions considered suspicious, Bloomberg reported, citing people familiar with the matter.
The notice followed findings by the federal economic intelligence wing, which identified the transactions as “abnormal and dubious”, the people said, requesting anonymity due to regulatory protocols.
The individuals did not reveal the financial scale of the transactions, noting that the investigation remains at a preliminary stage.
According to them, the company has been granted approximately two months to submit a response.
Authorities will also probe potential breaches of corporate governance and possible diversion of funds, they added.
The Corporate Affairs Ministry did not immediately respond to a request for comment. Patanjali Ayurved has also yet to provide a statement.
This is not the first instance of regulatory scrutiny for Patanjali Ayurved or its subsidiaries.
Last year, one of its units was served show-cause notices by the government over alleged tax defaults and ineligible refund claims.
Separately, India’s Supreme Court barred the company from advertising its products as cures for illnesses such as cancer, citing violations of the Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954.
In February 2025, Kerala’s Drugs Control Department reported 26 active cases across different courts in the state against Ramdev and Patanjali under the same advertisement law.
Several newspapers are also facing legal action for publishing the contentious ads.
While Patanjali Ayurved remains privately held, its listed arm, Patanjali Foods Ltd., has seen its shares fall nearly 10% so far this month.
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